BACHELOR OF MANAGEMENT WITH HONOURS

SEMESTER SEPTEMBER 2020

BBRC4103

RESEARCH METHODOLOGY

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 List of Contents

Page
Task 1
1.0 Introduction to Research Process
2.0 Problem Statement
3.0 Research Objective
4.0 Research Objective
5.0 Justification for Research study
Task 2
1.0 Introduction
2.0 Literature Review
3.0 Theoretical Framework
4.0 Research Methodology
5.0 Gantt Chart
6.0 Research Budget
7.0 Conclusion
8.0 References
Task 1

TITLE: The Connection of Corruption and the Economic Growth in Malaysia

1.0 Introduction to Research Design

To create a smooth and easy flow research, research design is drafted and a few steps needed
to be followed. This is including:

1. Decide on the topic

2. Narrow the Topic

3. Do background research toward your topics

4. Create a research Questions.

5. Create a working thesis statement by answering the research questions

6. Determine the suitable material needed for your argument.

7. Creating a bibliography

8. Paper writing.

By referring to data released by Transparency International in the year of

2019, Malaysia had recorded a Corruption Perception Index (CPI) score of
53 out of 100 marks and was ranked 51th among 180 listed countries and
was known to be one of the least corrupted countries in the South East Asia Broad Topic In
Specifically. Malaysia shows the significant positive increment of CPI Context
scores when compare to the last ten years backs. Figure 1 shows the
Corruption Perception Index (CPI) for Malaysia for year 2010 to 2019 as
reported by Transparency International.

Last but not least, the most uprising issues of corruption that need to be
address is its short and long term effect toward Malaysian Economic
Growth rate. Corruption might be bringing out advantage in either in the Problem/
short or in the long run and theories proposed that corruption is capable to motivation
neutralized government ineffectiveness and thus improve economic
growing in the short run.

On the other hand, policy makers realize that the damage it done in the
long run is too severe for a nation to hold as it will only effected economic Narrowing
but also lifestyle and cultures of Malaysian. Policy makers in general need topic and
to shift their concern to more focus on the short term effect as they might problem
miss out the effect it bring on economic growth. Ignoring the short term
effect of corruption will result in the difficulties in monitoring the
corruption issues as it has become severe and unstoppable in the long run.

This research need to be done due to the lack of empirical research studies
especially on this topic of corruption and economic growth in Malaysia Specific Topic
specifically. Previous studies that related with this study were conducted And theory
by using developing countries or Asian countries as their case study in
general and none of them were discussing corruption illness that lingering
here in Malaysia for decades.
The research objectives for this research study are including the following:
1.0 To study the relationship between corruption and the economic growth
by using various transmission channels which is comprises of Aim and Scope
government spending, investment, human capital and trade openness.
2.0 To investigate the impact of corruption brings on Malaysia economic
growth through numerous transmission channels proposed.
3.0 To study the short and long run relationship between corruption and
economic growth.
2.0 Problem Statement.

Previous researcher had conducted numerous studied in regard with this field had
been not come up with concrete and consistency result on whether corruption is “grease the
wheel” or “sand the wheel” toward Malaysian Economic Growth. Despite of that,
organizations and communities in general assert that the corruption is disruptive and hence
eradicating corruption will significantly enhance Malaysian development rate and other
developing countries in South East Asia. It is known for a fact that Malaysia which is a
developing country have to fully utilize the government spending in developing the
infrastructure and facilities in order to enhance the standard of living of citizens in the
Malaysia. As for instance, the country needs to spend extra money if they were encountered
with higher case of corruption and this will hinder country’s development as the money was
initially allocated and budgeted for development purposes. Thus Corruption should be
controlled and eradicate to the bottom level as it bring negative impact to the nation’s
economy. Distribution of public fund into the projects that brings higher opportunity for
bribes payments impedes the economic growth of a country as the misuse of public fund is
spent on unproductive projects.

Even though Corruption cases in Malaysia has shown a significant drop for this year as per
reported, corruption cannot be deny having both of its pro and cons that should the
government aware. In case if corruption brings positivity in Malaysian economic, should
policymaker encourage corruption and revoke the anti-corruption policy and maintaining it at
safe level? Thus a study is really needed to be done to help policy maker to either promoting
or vice versa.

Last but not least, the most uprising issues of corruption that need to be address is its short
and long term effect toward Malaysian Economic Growth rate. Corruption might be bringing
out advantage in either in the short or in the long run and theories proposed that corruption is
capable to neutralized government ineffectiveness and thus improve economic growing in the
short run. On the other hand, policy makers realize that the damage it done in the long run is
too severe for a nation to hold as it will only effected economic but also lifestyle and cultures
of Malaysian. Policy makers in general need to shift their concern to more focus on the short
term effect as they might miss out the effect it bring on economic growth. Ignoring the short
term effect of corruption will result in the difficulties in monitoring the corruption issues as it
has become severe and unstoppable in the long run.
3.0 Research Question.

Few research questions are created and focused on this study including:

1.0 Does corruption stimulating or hindering economic growth in Malaysia?

2.0 What is the aspect and how does corruption affect development growth in Malaysia?
3.0 Does Corruption affect Malaysia’s economic growth in the short and long run?

4.0 Research Objective

The research objectives for this research study are including the following:

4.0 To study the relationship between corruption and the economic growth by using various
transmission channels which is comprises of government spending, investment, human
capital and trade openness.
5.0 To investigate the impact of corruption brings on Malaysia economic growth through
numerous transmission channels proposed.
6.0 To study the short and long run relationship between corruption and economic growth.

5.0 Justification for Research

This research need to be done due to the lack of empirical research studies especially on this
topic of corruption and economic growth in Malaysia specifically. Previous studies that
related with this study were conducted by using developing countries or Asian countries as
their case study in general and none of them were discussing corruption illness that lingering
here in Malaysia for decades. Thus, the data obtained from previous research might be not
applicable and ideal for Malaysian government to fight corruption by using the methods or
approaches suggested in their studies. This is becoming the major driving force for
researchers to study in depth in the case of Malaysia solely in order to close the gap that
resulted from previous studies.

On the other hand, the result obtained from studying the channel of transmission on which the
corruption will hindrance the economic and development growth in Malaysia will aid policy
maker to make a good decision making in targeting corruption effectively and more
efficiently. As a result, policymakers can pay more attention to the special channels with
better allocation of government spending in order to spur economic growth.
Previous study is mainly focus on the short term effect of corruption toward Malaysia’s
economic performance such as on the time frame of 10 years. Thus Hence, as proposed by
Anderson, Burnham, Gould and Cherry (2001), this research will make use of the newest
available data and increasing the time frame for a longer period to thirty years that may
further improve the results. This research is really useful for supporting policy maker to
implement the best fit policies and approaches in the upcoming year and provide a concrete
foundation in constructing policy by policymakers.
Task 2: Research Proposal

TITLE: The Connection of Corruption and the Economic Growth in Malaysia

1.0 Introduction

1.1 Definition

According to Petrou and Thanos in 2014, Corruption can be defined as an abuse in the
entrust of authority, dishonest behaviour to gain one’s private benefits by those in position of
power such as manager or governments officials. On the other hand, corruption can be
divided into three types which are grand corruption, bureaucratic corruption and political
corruption. Based on this types grand corruption is the worse corruption as it the action will
affected the entire country it involves corruption within political elites (Jain, 2001). Politician
in general were voted by public to balance the interest of the entire society by making a wise
decision making and since corruption is done by top public hierarchy, their action will
affected the country. Apart from that, manipulation of economics policies by elite politician
also falls into these categories. Policies were altered and manipulated by them which resulted
in having greater benefit for themselves. The political elite are manage to affect or execute
the national policies by adjusting it to his own preferences and therefore redirect the
distribution of resources from the general public to themselves. This will lead to imbalance
and harm economic growth.

Moreover, bureaucratic on the other hand can be defined as a corruption involving

two parties which consist of political elites and the public bureaucrats. As for a low-level
corruption, the corruption officer took bribes in order to execute a service or even to speed
ups a bureaucratic procedure. Furthermore, the officials can extract bribes to perform tasks
that assigned to them by the political leaders or to perform tasks in which they are not obliged
or delegated to do. Jain in 2001, defined political corruption as corruption that influence and
astray the voting behaviour of legislators. This means if a group of people which share the
same interest will bribe the legislator to endorse laws to make it easier, more profitable or
favourable to track on the economic rents that is associated with their activities.
1.2 Causes of Corruption

The main cause of Corruption is the poor implementation of Laws. According to Duvnova in
2014, she reported that red tape is one of the sources of regulatory pressure that drives
officials and persons to practices corruption. Red tape can be referred as a formal rules or
standard that is claimed to be too rigid, excessive or to bureaucracy to hinder or slow down
the process of decision making. This scenario is often happening within a corporation, firms
and governments. Tanzi (1998) on his study on bribery had said that if a rule is able to be
used to extract bribes thus more rules will be implemented to make it complicated and harder.
Thus bigger organization tends to cut through this red tape and give out bribes that will ease
and benefited business without undermining the official regulatory policies. Thus, the
corruption in some country acts as normal practices and will be judge as misbehaviour and
dishonesty.

Apart from that, it cannot be deny that this ill practise is result from the cultural,
political and economic instability of the nation. A study conducted by Mc Laughlin in 2013
revealed that some countries like Malaysia, India, and Vietnam as one of the country that
possess higher degree of corruption for private gain. As an instance, a middleman merely is
able to get visa extension stamp on traveller’s passport at the immigration office as long as
they pay the officers. This practice will make more government servant to behave this way
and sooner it became a culture as everyone is doing it without realizing the fact that it was a
wrong doing and immoral (McLaughlin, 2013).

Researcher had conducted a several study on the destructive impact corrupcy bring to
the nation in general and its relationship with the economic growth. Researchers believe that
corruption and bribery doomed and render economic growth due to uncertainty it creates
(Mounts, 2010). Reducing in investment, government spends less on public project when
lower tax revenue, and exert of "informal cost" could cause other institution ineffective
(Diaby & Sylwester, 2014). According to Wei (1999), slow development of economic is
triggered by high corruption level. The impact of corruption can be sorted out into four main
types which comprises of economic, political, social, and environmental. Corruption is one of
the biggest hindrances to economic and social development (Lauritzen & Sondergaard,
2012).
1.3 Background Study- Corruption in Malaysia

By referring to data released by Transparency International in the year of 2019,

Malaysia had recorded a Corruption Perception Index (CPI) score of 53 out of 100 marks and
was ranked 51th among 180 listed countries and was known to be one of the least corrupted
countries in the South East Asia Specifically. Malaysia shows the significant positive
increment of CPI scores when compare to the last ten years backs. Figure 1 shows the
Corruption Perception Index (CPI) for Malaysia for year 2010 to 2019 as reported by
Transparency International.

Figure 1: CPI Index for Malaysia for the Year of 2010-2019

The notable changes of CPI marks in the years of 2019 compared to the consecutive
two years back proves that Malaysian Government is Efficient and Effective at fighting
corruption to the roots even though it might involves the most influential politician in
Malaysia. The success in eradicate and reducing corruption and improvement in corruption
level is mostly rest on on the functions of legislation and government approaches in
implementation the strategy itself. For Legislation, government had launch the Whistle-
blower protection Act in 2010 which is aimed to encourage people report any suspicious
corruption practice within their agency or corporation while the government ensuring and
safeguarding their safety. Malaysia Government successfully prosecuted the rewards for
officers or individual that reporting corruption cases as well as the execution of Public
Service Reform by which monitoring anti-corruption is part of its efforts. On the other hand,
Malaysian Anti-Corruption Commission (MACC) Act was created in the year of 2009 to
replace the Anti-Corruption Act 1997 which was re-evaluate and few components were added
to make it more compatible and fit with current scenario.
1.4 Problem Statement.

Previous researcher had conducted numerous studied in regard with this field had
been not come up with concrete and consistency result on whether corruption is “grease the
wheel” or “sand the wheel” toward Malaysian Economic Growth. Despite of that,
organizations and communities in general assert that the corruption is disruptive and hence
eradicating corruption will significantly enhance Malaysian development rate and other
developing countries in South East Asia. It is known for a fact that Malaysia which is a
developing country have to fully utilize the government spending in developing the
infrastructure and facilities in order to enhance the standard of living of citizens in the
Malaysia. As for instance, the country needs to spend extra money if they were encountered
with higher case of corruption and this will hinder country’s development as the money was
initially allocated and budgeted for development purposes. Thus Corruption should be
controlled and eradicate to the bottom level as it bring negative impact to the nation’s
economy. Distribution of public fund into the projects that brings higher opportunity for
bribes payments impedes the economic growth of a country as the misuse of public fund is
spent on unproductive projects.

Even though Corruption cases in Malaysia has shown a significant drop for this year
as per reported, corruption cannot be deny having both of its pro and cons that should the
government aware. In case if corruption brings positivity in Malaysian economic, should
policymaker encourage corruption and revoke the anti-corruption policy and maintaining it at
safe level? Thus a study is really needed to be done to help policy maker to either promoting
or vice versa.

Last but not least, the most uprising issues of corruption that need to be address is its
short and long term effect toward Malaysian Economic Growth rate. Corruption might be
bringing out advantage in either in the short or in the long run and theories proposed that
corruption is capable to neutralized government ineffectiveness and thus improve economic
growing in the short run. On the other hand, policy makers realize that the damage it done in
the long run is too severe for a nation to hold as it will only effected economic but also
lifestyle and cultures of Malaysian. Policy makers in general need to shift their concern to
more focus on the short term effect as they might miss out the effect it bring on economic
growth. Ignoring the short term effect of corruption will result in the difficulties in
monitoring the corruption issues as it has become severe and unstoppable in the long run.
1.5 Research Question.

Few research questions are created and focused on this study including:

4.0 Does corruption stimulating or hindering economic growth in Malaysia?

5.0 What is the aspect and how does corruption affect development growth in Malaysia?
6.0 Does Corruption affect Malaysia’s economic growth in the short and long run?

1.6 Research Objective

The research objectives for this research study are including the following:

7.0 To study the relationship between corruption and the economic growth by using various
transmission channels which is comprises of government spending, investment, human
capital and trade openness.
8.0 To investigate the impact of corruption brings on Malaysia economic growth through
numerous transmission channels proposed.
9.0 To study the short and long run relationship between corruption and economic growth.

1.7 Justification for Research

This research need to be done due to the lack of empirical research studies especially on this
topic of corruption and economic growth in Malaysia specifically. Previous studies that
related with this study were conducted by using developing countries or Asian countries as
their case study in general and none of them were discussing corruption illness that lingering
here in Malaysia for decades. Thus, the data obtained from previous research might be not
applicable and ideal for Malaysian government to fight corruption by using the methods or
approaches suggested in their studies. This is becoming the major driving force for
researchers to study in depth in the case of Malaysia solely in order to close the gap that
resulted from previous studies.

On the other hand, the result obtained from studying the channel of transmission on
which the corruption will hindrance the economic and development growth in Malaysia will
aid policy maker to make a good decision making in targeting corruption effectively and
more efficiently. As a result, policymakers can pay more attention to the special channels
with better allocation of government spending in order to spur economic growth.
 Previous study is mainly focus on the short term effect of corruption toward
Malaysia’s economic performance such as on the time frame of 10 years. Thus Hence, as
proposed by Anderson, Burnham, Gould and Cherry (2001), this research will make use of
the newest available data and increasing the time frame for a longer period to thirty years that
may further improve the results. This research is really useful for supporting policy maker to
implement the best fit policies and approaches in the upcoming year and provide a concrete
foundation in constructing policy by policymakers.
2.0 Literature Review

2.1 Review of concepts and Theories

2.1.1 Rent Seeking

Rent seeking activities can be defined as a series of lobbying and political activity that is
done purposely to grab an opportunity from trade and gain profit in between the process
(Bade & Parkin, 2013). This theory can easily been illustrated as shown in Figure 1. This
figure explains on how rent seeking is badly affecting economic growth in Malaysia. As an
example, politic elite charge on price, P1 with the quantity, Q1describe that it was charge at
higher rate with lower output outcome when compared to P2 and Q2. At first, the area of A, B
and C are owned by consumer surplus but due to misallocation of resources that is triggered
by rent seeking culture, resulted in the loss for area B. This event will cause the changing
from customer surplus to a producer surplus which is also known as the redistributed effect
(Bade and Parkin, 2013). Area B becoming a deadweight loss where no one is able to
enjoying that surplus and the social benefits is no longer applicable. This resemble this
empirical study where suggesting that corruption will only bring negative impact toward the
economic growth (Mauro, 1995; Knack and Keefer, 1995; Brempong, 2002)..

Figure 1: Rent Seeking Diagram

Source: Bade, R. & Parkin, M. (2013). Foundations of Microeconomics. United Stated,

America: Person Inc.
2.1.2 Queue Model

Elmukhtar and Ali in 2013 designed a Queue Model specifically for corruption where this
model taking into accounts all of social maximization. This model is designed due to the
consent made by Huntington (1968) and Leys (1965). These researches suggest that
corruption may bring a positive impact toward a country’s economic growth. They believe
that corruption increases public servant’s efficiency and their productivity. This statement is
supported by Acemoglu and Verdier (1998), they agreed that corruption bring a positive
impact to a nation growth rate. These researchers also reported that if corruption is proven to
bring a positive gain to the economy then corruption allows at a certain levels and legalized.

Bureaucrats give outs business licenses to companies and grant them a special
treatment to those who bribes in order to speeds up the process and avoiding red tapes. As an
example, if entrepreneur want to set up a factory at somewhere else by giving bribe,
bureaucrats will reduce paperwork or process to go through and grant a license easily. That is
due to corruption on the project mentioned earlier brings positive impact to the country and
its lead to economic growth by hiring more employees.

2.1.3 Transaction Cost Theory

Transaction cost of a legal agreement is including the cost of searching partners, determining
contract condition and as well as enforce contract term (Lambsdofrr, 2002). On the other
hand, corrupted agreement of transaction cost is hidden from any third party. This is because,
the collaborator at the end need to disclose the information about each other, thus this kind of
agreement is usually used the middleman as their company spokesperson.

Apart from that, he also studies the relation between market for goods and services in
the form of parochial corruption, the total transaction cost rise as the total number of potential
contractors to be seek increase. The cost of hiring potential contractor, assessing its quality
and more are leading to high marginal transaction cost and thus the number of contractors
will stop at marginal transaction cost of searching additional one partner equal to the
estimated gains resulting from a potentially superior deal with another competitor. If
corruption is lead to greater marginal transaction cost, the lesser the potential collaborator
will pursue for and entrepreneur can save the capital and invest in another giant project. As
the project goes on, the company will hire human capital to operate the machines and produce
goods and services effectively. Thus, the buying and selling goods and services tend to
enhance economic growth as well.

2.2 Channel of Transmission

Corruption in general will give impact to Malaysia’s economic growth through four different
channel namely as trade openness, government spending as well as human capital. Firstly is
trade openness. According to Graeff and Mehlkop in 2003, they reported that, fewer
governments’ manipulation means that the government does not practice corruption and will
decrease the chances of rent seeker to receive bribes. If the restriction from government is
loosen, the gaining of business activities are merely based on competition. Krueger (1974)
stresses out the impact of rent seeking on theory of trade. The author determines that barrier
of import leads to rent seeking activities as they are competing for import license. Grossman
and Helpman (1994) pointed out the problem of rent seeking whereby more resources are
used to pay bribes to corrupt officers in application of certain procurement and those bribes
payment deem as deadweight loss in the economy.

On the other hand, the next channel is called government spending. Due to the
bigger opportunity seen that favoured the civil servants, they are more likely to engage in the
rent seeking activities and changing the structure of government spending way (Shleifer and
Vishny’s 1993). According to Mauro in 1998, he reported that uncontrolled corruption level
will result in the insufficient government funds on education. Corruption wills destructively
affecting the adult literacy rate due to alteration of government spending structure. Gupta,
Mello and Sharan (2001) reveal that corruption decreases the allocation of government funds
on children healthcare. Wade (1982) studies had reported that that poor quality of roads and
more frequent number of electricity disruption when the presence of corruption in
government budgetary allocation.

Next is investment. Corruption practises reduce and discouraging domestic and

foreign investment to the country due to transaction cost of doing investment. Corruption
added up the production cost for executing one project. This leads to higher output price
while on the other hand resulted in the decreased in the output capital ratio. According to
Bardhan in 1997, he mentioned that businessman believe that speed money is necessary to
start up their business in this country as it will ease the process and such. Despite of that, they
will shut down from their market business if the profit gain is less that the amount of bribe
given. Thus this reduced the incentive of investment because the higher the amount of bribes
the lower one will gain profitability on productive investment as mentioned by Mauro in the
year of 1995 on his study on corruption. Investment with corruption brings uncertainty to
local and foreign investors because bribe payment is illegal. Uncertainty arise due to
detection of corruption involve punishment that cause heavy loss to the investor if
punishment fee more than profit earned (Myint, 2000).

The last Chanel of transmission is by human capital. The existence of corruption

within Malaysia’s education system will render the quality of human capital produced. This is
because, education system is needed to achieve better quality of human capital as mentioned
by (Sleezer, Conti & Nolan, 2004). The existence of bribes will cause the suboptimal use of
human capital, thus harm a country economic development. This is because, people without
skills and good possession of knowledge will bribes in order to obtained a better profession.

2.3 Gap of Study

In regard with the field of this study, corruption is not a new issue but in Malaysia there are
only few research that discussing the relationship of corruption and development growth rate,
the research were mainly focus on developing country and south east Asian in general.
Ideally, corruption brings the domino effect and results in cross-country studies are firm due
to fixed effects (Rock & Bonnett, 2004; Mendez & Sepulveda, 2006; Brempong & Camacho,
2006). On the other hand, in reality the result is not firm due to changing economic condition
in fast pace. Thus, this study is conducted to fill in the gap by using the time series analysis to
find out the long run and short run relationship between corruption and economic growth rate
in Malaysia. Previous study had reported distinct result. Past research reveal that, the
presence of this relationship of corruption and economic development while other studies
reported vice versa. Moreover, most previous studies fixated at the micro level and explore
the firm behavior impact on corruption (Wang & You, 2012; Ayaydin & Hayaloglu, 2014;
Fisman & Svensson, 2007). Less research was done to investigate the economic outcomes
from corruption at the nation-state (macro) level (Farooq, et.al , 2018)
3.0 Theoretical Framework

Trade openness
Government Economic
Corruption
Spending Growth
Human Capital

Figure 2: Theoretical Framework

By referring to the research questions and literature review discussed before in regard with
the corruption, trade openness, government spending, investment and more. Theoretical and
conceptual Framework had been developed from the rent seeking, queue model and
transaction cost model.

Rent seeking model and Queue model are both showing contradicted and
unidirectional connection between the relation of corruption and economic growth rate. Rent
seeking model suggest that the act of bribery and corruption will lead to misallocation of
resources (funds, workforce, raw material and more) and hence will be the factor to hinder
one economic growth. On the hand, the second model which is queue model state that
corruption bring a constructive impact to the country economic growth. This is because
bribery wills efficiency avoiding the red tapes and bureaucratic delays.

Corruption carries a significant disruptive impact to a nation’s economy indirectly

especially on our country’s trade openness. The relationship between corruption and trade
openness is studied in this research. The act of bribery and corruption in the trade openness
will open up the windows of opportunity for rent-seeking activities as the winning party need
to bribes as part of the business cost. Despite of that, as the development of technology is
rapidly growing worldwide; it leads to the liberalization of the country’s economy. The
trading of technological knowledge will improve production efficiency. This is positively
triggered global competition which in turn improves global efficiency. Hence, greater trade
openness encourages economic growth as production efficiency improved.
 The government spending allocation will be changing when corruption is practices
within a country. Government spending is no longer efficient and benefit the country as
corruption in general inspire individual, especially those who serve as the civil servant to
instil a rent seeking behaviour within themselves. Thus, the speed money makes them
develop dishonesty when performing their job scope. Inefficient allocation of government’s
resources conveys undesirable effect on country economic performance. In contrast, a
productive public spending can boost up economic growth.

It cannot be denied that education is a crucial and important aspect of human

capital production for a country. Corruption makes potential, talented and productive people
to become unproductive and make no effort to improve themselves due to own benefit
seeking and other external forces. Investment in human capital will ensure country’s positive
economic growth. This is because, the more educated the citizen in the country, the more the
country producing productive employee. Productive employee is necessary for the
development of the country as they are capable and responsible to carry out tasks more
efficiently compared to those low educated workers.

In conclusion, Corruption directly will affect economic growth in Malaysia. The

effect of corruption can be conveyed to economic growth through several refereeing factors
including trade openness, government spending, investment and human capital.
5.0 Gantt chart

Week
Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Problem Identification
Proposal writing
Data collection by using
Econometric Methods (Unit Root
Test, ARDL Approach)
Data Analysis ( Breusch-Godfrey
Serial Correlation LM Test,
Ramsey RESET Test, Jarque-Bera
(JB) Test)
Data interpretation
Report drafting by Drawing
conclusion, reflection and
implication
Final Report Write up
Documentation and presentation of
finding in seminar
6.0 Project Cost and Budgeting

Budget Total (RM)

A. Personnel
Salary
Principal Investigator 3000
Project Coordinator 1800
Research Assistant 1300
Subtotal Personnel 6200
Project Participant
Focus Group and Pilot Testing 400
Material and Supplies
Copying, envelope 250
Misc., supplies 2500
Postage 150
Subtotal Project Expenses 2950
Travel 2400
Total Direct Cost 2400
Indirect Cost 120
Total Cost 9670

Justification

A. Personnel
Mr Jamil, Head of Investigator. He is held into account to the overall project
coordination and supervision of all prospect of the research Study. This is also
comprises of the process of hiring other personnel, training session as well as overall
supervision of staff. Dr Jamil will be responsible to take care of data management,
assisting with statistical analysis and be responsible for reporting the overall research
finding and results.

B. Others
Miss Sarah, Project coordinator. She is responsible in managing and coordinating
daily routine of the study. Apart from that, she is also responsible to key in all data
entry for all data treatment and serves as data inventions.

Miss Amal, Research Assistant. Miss Amal will be assisting others such as ordering
supply material, data collection as well as for data analysis.
 C. Material and Supplies
Cost of Research supplies is calculated at approximately of RM2950. This also will
include all misc. materials.

D. Travel
The total cost of travelling of RM 2400 is requested to attend conferences to present
the finding associated with the investigation.

The cost of using equipment and software analysis is not included in this budgeting because
the facility is provided by the university.
7.0 References